Feature article originally published in The Appraisal Journal Spring 2013 issue.
Limited-market and special-purpose properties present unique challenges in valuations related to ad valorem taxation. Municipalities typically use the cost approach for property assessments. Owners of limited-market and special-purpose properties engage appraisers who utilize the sales comparison, income capitalization, and cost approaches in appraisals used to appeal assessments. This article summarizes appeals cases in one state to explore why taxpayers have had little success in abatement hearings. The case rulings present issues worth consideration in any tax abatement appraisal involving a limited-market or special-purpose property.
John M. Crafts, MAI
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